No matter the industry, contract management processes are a time-consuming aspect for every business. Nevertheless, there are many important factors regarding this issue that need close inspection and always leave a margin for error.
As times change, your contracts and agreements need to adapt to new clients, circumstances and needs. However, these processes usually don’t evolve as constantly as they should.
What is contract management?
It is important to define what contract management is to fully comprehend the importance of this process.
Contract management is the process of managing all agreements your company makes with clients, partners, vendors, and employees.
The types of contracts each organization works with varies and can include: lease agreements, vendor agreements, NDAs, SOWs, vendor agreements, MSAs and many others. However, each type has specific conditions and elements that should be met.
Steps of a contract management process
This management not only means creating the agreements. It also requires negotiating deadlines, terms and conditions and verifying compliance.
Besides, this process demands monitoring the execution of the agreements.
Planning. At this stage, you need to start defining the type of agreement. This means, how the contract will be managed, what things you need to include and so on.
Creation. Once you’ve planned every aspect of your contract; it is time to start creating it.
Approval. After you have drafted the contract you need to send it for approval.
Negotiation. This process requires close follow-up and monitoring after the contract has gone back and forward, it might be complicated to keep track of the right version of the document.
Execution. After all the parts of the agreement have been defined and approved, it’s time to get the signature of the parts involved. You can use CLM software for this, or take the traditional printing and scanning process.
Administration. It refers to monitoring compliance of the terms and conditions defined on the agreement.
Reporting. With a proper report, you can better understand how your contracts are being managed and also understand where they are running into road blocks.
Contract management software
Implementing a contract management software can help you improve productivity, by simplifying this process and reducing possible errors. This tool takes care of every aspect, saving valuable time that can be invested on business growth.
So, if you really want to optimize your processes, contract management software can become your best ally. Another great feature is that it allows you to keep easy access and visibility to all your contracts when needed.